By James Langton

(November 15 – 14:45 ET) – Mutual funds booked strong inflows during a turbulent October, according to statistics from the Investment Funds Institute of Canada.

IFIC reports that October net sales, excluding re-invested distributions of $298 million, totalled $1.5 billion, up 42% from September and up 445% from October last year.

Rough markets conspired to knock 1.3% off industry assets however, down to $427 billion. Canadian equity assets dropped 2.4%, compared with a 7% slide in the TSE 300 during October.

Among the 25 largest firms, the biggest loser from last month is Altamira, which saw assets fall 5%. StrategicNova, Global Strategy, Spectrum, Clarica and Dynamic all saw assets drop at least 3%. Among the smaller firms, Marathon saw its assets fall 13.3% month over month, followed by University Avenue, down 12.2% and Sagit, down 8.1%.

Winners in October include AIC, AGF, Bissett, Clarington, Synergy and National Bank. During the month AGF climbed to eighth place from ninth, surpassing CIBC. Once it absorbs Global Strategy, it will jump two more places to rank sixth.

Only $110 million of the total net sales went into money market accounts. The heaviest net sales continued into foreign equities, reporting almost $700 million in net sales, followed by Canadian equities with $310 million, and U.S. equities, which garnered $260 million. Almost $180 million went into balanced funds, while most fixed income groups saw net redemptions.

In the year to date, foreign equities continue to be the most popular sales category, with gross sales up more than 80%, although redemptions are up 60%. Canadian equity gross sales are up just 33%, but redemptions have reversed the trend, down 5% in the year to date period from 1999.

“Investors seem to be learning that mutual funds are a good investment during turbulent times,” says Tom Hockin, IFIC’s president and CEO.

IFIC also reported the total number of unitholder accounts at 49.6 million, a 11.2% increase over one year ago.